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Relevance: GS-II (International Relations); GS-III (Infrastructure) Source: Diplomatic & Strategic Updates, September 2026

1 · Context and the Issue

India is constructing two important hydroelectric dams in Jammu & Kashmir (Ratle and Kishenganga) to meet its electricity needs. Pakistan frequently objects, claiming the dam designs violate the 1960 Indus Waters Treaty (IWT). Recently, an international court in The Hague (PCA) ordered India to halt construction on the Ratle dam.
However, India completely rejected this order. Why? Because India argues the court was illegally set up by the World Bank. The treaty rules strictly say that technical dam issues must be solved step-by-step, starting with a ‘Neutral Expert’. Pakistan skipped this and demanded a full court, and the World Bank wrongly allowed both to happen at the same time.

2 · The Procedural Fight Explained

Step 1: The Rulebook
The Indus Waters Treaty mandates a strict sequence: First, talk locally. If that fails, call a ‘Neutral Expert’ for technical issues. A ‘Court of Arbitration’ is only for legal disputes.
Step 2: India vs Pakistan
Since dam design is a technical issue, India rightly asked for a Neutral Expert. Pakistan wrongly skipped this step and directly demanded a full Court.
Step 3: The World Bank’s Mistake
Instead of enforcing the sequence, the World Bank breached the treaty by allowing both the Neutral Expert and the Court to run parallel investigations at the same time.
Step 4: India’s Boycott
India completely boycotted the illegal Court ruling (PCA) but welcomed the legal Neutral Expert’s decision to continue reviewing the dam designs.

3 · Key Treaty Terms

Run-of-the-River (RoR)
Power Without Storing
Dam designs that generate electricity using the natural flow of the river, without storing large amounts of water. The treaty legally allows India to build these.
The Western Rivers
The Disputed Waters
Under the IWT, the Indus, Jhelum, and Chenab rivers belong mostly to Pakistan. However, India has strict rights to use them for making RoR electricity.
Permanent Court of Arbitration (PCA)
The Boycotted Court
The international court in The Hague that ordered India to stop construction. India boycotted it, stating it has zero legal jurisdiction over India in this specific case.
Abeyance Strategy
Treaty on Pause
Following a major terror attack, India placed the IWT “in abeyance” (on hold). In global law, state-sponsored terrorism is a breach that justifies pausing a treaty.

Prelims Quick Facts: Geography & Treaties
Ratle Hydroelectric Plant An 850 MW power project located on the Chenab River in Jammu and Kashmir.
Kishenganga Hydro Project A 330 MW project located on the Kishenganga River, which is a major tributary of the Jhelum River.
Indus Waters Treaty (1960) Brokered by the World Bank, it gives the Eastern Rivers (Ravi, Beas, Sutlej) entirely to India, and the Western Rivers (Indus, Jhelum, Chenab) mostly to Pakistan.
Vienna Convention (VCLT) The global rulebook for treaties. It states that if one country commits a “material breach” (like sponsoring terrorism), the other country can legally suspend the treaty.

MCQ Practice Question
Q. With reference to the Indus Waters Treaty (IWT) and India’s hydroelectric projects, consider the following statements:

  1. The treaty permits India to build Run-of-the-River (RoR) hydroelectric projects on the Western Rivers, including the Jhelum and Chenab.
  2. The dispute resolution mechanism under the IWT explicitly allows for simultaneous parallel proceedings by both a Neutral Expert and a Court of Arbitration.
  3. The Ratle Hydroelectric Plant is being constructed on the Ravi river in Jammu & Kashmir.

Which of the statements given above is/are correct?
(a) 1 only    (b) 1 and 2 only    (c) 2 and 3 only    (d) 1, 2 and 3

Answer: (a) 1 only

  • Statement 1 — Correct: India has strict rights under the IWT to use the Western Rivers for non-consumptive purposes, such as generating electricity via Run-of-the-River dams.
  • Statement 2 — Incorrect (the trap): The treaty strictly mandates a sequential (step-by-step) process, prohibiting parallel proceedings. The World Bank breached this rule by starting both mechanisms simultaneously.
  • Statement 3 — Incorrect: The Ratle Hydroelectric Plant is being constructed on the Chenab River, not the Ravi river.

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